On February 8, 2011, the Federal Reserve Board issued a notice of proposed rulemaking implementing Section 113 of the Dodd-Frank Act to further identify and define systemically important nonbank financial companies.

The Dodd–Frank Wall Street Reform and Consumer Protection Act federal statute in the United States that was signed into law by President Barack Obama on July 21, 2010. The Act is a product of the financial regulatory reform agenda of the Democratically-controlled 111th United States Congress and the Obama administration.

The proposed rule includes these two issues:

1. Identifies the criteria to determine if a company predominantly engages in financial activities.
2. Defines “significant nonbank financial company” and “significant bank holding company.”

We will monitor the rule and will keep you posted on our website and here at the blog. We will also include some new development on the Dodd-Frank Act in our March Newsletter. If you are not yet a subscriber, please contact us.

Picture: (C) Salvatore Vuono: http://www.freedigitalphotos.net/images/view_photog.php?photogid=659